Stock market Tips
- Thread starter jjaycee98
- Start date
My knowledge is ALL second hand. One guy retired at age 35 a wealthy man, by investing only in stocks connected to every day necessities- tooth paste, toilet paper, bread, eggs, milk- any stuff that when the economy really hits the skids people will still be buying.
Buy low, sell high........Or, like Toro.
Most bank stocks were a good buy a few months ago; and probably still are.
When's the last time you saw TD trading in the 30's ?? Now at about 56 -7, and, if Kanukistan can pull off a recovery, it's gonna go higher.......soon.
So everyone run out and get some. I already did, and you will make mine worth more..........;-)
(maybe)
Less exciting than most (but then if you listen to Warren Buffet the best buys always are), but after a lengthy analysis I just bought into Indigo (IDG). I generally buy for long term.
And from where I'm standing, I don't see how anyone could have possibly thought that this recent rally wasn't going to come an end soon. The fundamentals are still bad, and it has been losing momentum for weeks.
And from where I'm standing, I don't see how anyone could have possibly thought that this recent rally wasn't going to come an end soon. The fundamentals are still bad, and it has been losing momentum for weeks.
Polygong, I don’t know if fundamentals are bad or not (I will let the experts worry about that).
However, what is so surprising about the rally coming to an end? All rallies eventually come to an end. TSE has had a fantastic run for the past few weeks, I think from the bottom it went up around 40%. It would be unrealistic to expect this rally to continue, good fundamentals or bad.
The important thing is to see where it bottoms out. If the bottom this time is higher than the bottom the last time, we may be on to long term recovery. Certainly the top his time was much greater than the last time. I think last time TSE peaked around 9900, this time it was 10600.
Stock market never goes up in a straight line, it is always rally followed by correction. For a long term investor, neither rallies nor corrections matter. A correction may be an opportunity to buy good stocks cheap, but nothing more.
I'm pretty sure today's blip was mainly profit taking, some commodities have dropped a bit, but a sharp turnaround could happen before the week is out.
If you want a sure bet in ventures growing to sizable value and excellent dividends look for REEs (rare earth elements).
What are REEs? The rare earth elements (or "rare earths") are also known as the lanthanide series of elements and include the 15 elements in the lanthanide series of the Periodic Table of the Elements, plus yttrium and scandium. The better-known elements are cerium, lanthanum, neodymium, praseodymium, gadolinium, europium, and samarium.
How are they used? They are used in catalytic converters, hybrid car batteries, magnets for hybrid braking systems, Ceil phones, aerospace industries, LCD screens etc etc
The colours you see on the display in your LCD are from phosphors that contain europium, yttrium, and terbium; the glass contains cerium and yttrium; the faceplates were polished with cerium and lanthanum; the electronics contain neodymium; and the microchips were polished with cerium.
Typically, once the rare earth ore is mined and concentrated, it is further processed (either by the mining company or a third party) into a mixed rare earth powder (e.g., as oxides or chlorides). This mixed rare earth product may be sold as is, or processed further by separating the individual REEs into a purer product (e.g., cerium oxide or neodymium oxide).
The value of rare earth powders depends on the purity of the rare earth powder, the lot size, and how it was refined.
Here are two examples of price variance:
Oxide powder varies in price from US$3.00 per kg, for cerium oxide in a one tonne lot size, to US$15,000 per kg, for scandium oxide in 100-g quantities.
Individual powders further refined into metal, depending on purity and lot size, may range in price from US$15.00 per kg, for lanthanum metal, to US$30,000 per kg, for scandium metal.
To put this into perspective, gold is currently worth about US$20,000 per kg. However, a high-grade gold deposit might have a gross value of only US$120 per tonne, while a high-grade rare earth deposit could easily have a gross value of US$1,000 per tonne or more.
So there you have it. No other mineral market is growing as fast. The current lust for REEs is insatiable. China has 97% of present supplies creating a rush to secure REEs from other sources like.....CANADA there is a very viable deposit here in Canada being developed. If you've ever wanted "in" on something that is growing beyong belief....this is it.
What are REEs? The rare earth elements (or "rare earths") are also known as the lanthanide series of elements and include the 15 elements in the lanthanide series of the Periodic Table of the Elements, plus yttrium and scandium. The better-known elements are cerium, lanthanum, neodymium, praseodymium, gadolinium, europium, and samarium.
How are they used? They are used in catalytic converters, hybrid car batteries, magnets for hybrid braking systems, Ceil phones, aerospace industries, LCD screens etc etc
The colours you see on the display in your LCD are from phosphors that contain europium, yttrium, and terbium; the glass contains cerium and yttrium; the faceplates were polished with cerium and lanthanum; the electronics contain neodymium; and the microchips were polished with cerium.
Typically, once the rare earth ore is mined and concentrated, it is further processed (either by the mining company or a third party) into a mixed rare earth powder (e.g., as oxides or chlorides). This mixed rare earth product may be sold as is, or processed further by separating the individual REEs into a purer product (e.g., cerium oxide or neodymium oxide).
The value of rare earth powders depends on the purity of the rare earth powder, the lot size, and how it was refined.
Here are two examples of price variance:
Oxide powder varies in price from US$3.00 per kg, for cerium oxide in a one tonne lot size, to US$15,000 per kg, for scandium oxide in 100-g quantities.
Individual powders further refined into metal, depending on purity and lot size, may range in price from US$15.00 per kg, for lanthanum metal, to US$30,000 per kg, for scandium metal.
To put this into perspective, gold is currently worth about US$20,000 per kg. However, a high-grade gold deposit might have a gross value of only US$120 per tonne, while a high-grade rare earth deposit could easily have a gross value of US$1,000 per tonne or more.
So there you have it. No other mineral market is growing as fast. The current lust for REEs is insatiable. China has 97% of present supplies creating a rush to secure REEs from other sources like.....CANADA there is a very viable deposit here in Canada being developed. If you've ever wanted "in" on something that is growing beyong belief....this is it.
It was probably a bit of both. But that is what invariably happens. After the markets have rallied for a while, some bad news comes along, investors get spooked and there is a mad rush for the exit door.
Then when the markets have been beaten down sufficiently, the savvy investor comes in, there is invariably some good news (or the bad news not as bad as feared) and the market shoots up again. That is the normal ebb and flow of the markets.
WHat I was getting at is that many people saw this past rally as the great turnaround, the end of the economic downturn. I don't think that it was and that there is much more pain to be felt. The bear market of 2002 saw a huge rally after the first big drop, bigger than this one, and was followed by another big drop and two years of falling prices.
The market doesn't move up in a straight line, but neither does it fall in a straight line.
The market doesn't move up in a straight line, but neither does it fall in a straight line.
Polygong, what happened in 2002 is known as a bear trap, in technical jargon.
After a huge drop, the stock market recovers nicely, making investors think that the worst is over. They invest again in the market, only to see a much bigger drop in the market, markets literally fall off a cliff. That is like stepping into a bear trap.
2002 came as a shock to almost everybody. After the drop of 2001, I was expecting stock markets to go up by around 10% in 2002. Instead they went down by more than 20%. I remember NASDAQ was at 1100, at its worst, down from the all time high of 5500.
But if you look at where the market (at least the TSE) was in 2002 and where it is today, you will see that the market is up compared to what it was in those days even after accounting for all the turmoil of the dot com crises. In the heydays of the dot com mania, TSE was around 11,000 at its maximum (when Nortel reached 120$). Today the market is not far from that all time high, in spite of plenty of bad economic news.
Time is on the side of the prudent investor.
The bear market of 2002 saw a huge rally after the first big drop, bigger than this one, and was followed by another big drop and two years of falling prices.
Are you sure of this, Polygong (that the rally was bigger than the current one)? In the current rally, TSE went up from 7500 to 10,600, an increase of more than 40%. I don’t remember a 40% bear market rally in 2001-2002.
Are you sure of this, Polygong (that the rally was bigger than the current one)? In the current rally, TSE went up from 7500 to 10,600, an increase of more than 40%. I don’t remember a 40% bear market rally in 2001-2002.
Admittedly, I may have jumped the gun on that claim, which came more form eyeballing charts than hard calcs.
Still, I'm sure that we did indeed have a bear trap there (thanks for the info on terminonlogy
). I'm not an economic expert but I'd still say that we've got at least another year of a bear market ahead of us. My main rationale being that the issues that instigated last year's plummet are yet to be resolved, i.e. massive global debt.
Polygong;1 I'm not an economic expert but I'd still say that we've got at least another year of a bear market ahead of us. My main rationale being that the issues that instigated last year's plummet are yet to be resolved said:
I would suggest alternative energy companies. Not necessarily the energy producers them selvse but the equipment manufaturers. Banks and insurance companies are a boring but sure bet since they just pass along any potential losses to the suckers er I mean customers.
I agree, tax slave. Canadian banks are perennial good investments. And these days they are paying fantastic amount of dividends.
As to bank charges, which they pass on to suckers (you mean customers), I have been saying all along, don’t just whine and complain about bank charges, buy bank stocks. Then you won’t feel bad about paying bank charges, you may even welcome them. Bank charges mean that your bank is making money and indirectly that means you are making money.
